Compliance: the CFPB publishes the thresholds of Regulation Z 2021 | 2020-07-27

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The Consumer Financial Protection Bureau (CFPB) last week released updated dollar amount thresholds in Regulation Z for minimum interest charges, credit card penalty amounts for HOEPA loans and mortgages. eligible. These changes come into force on January 1, 2021.

The CFPB is required to calculate dollar amounts annually for several provisions of Regulation Z.

The thresholds are:

  • Minimum interest charges will remain unchanged at $ 1;
  • Credit Card Penalty Fee: The 2021 adjusted dollar amount for the Safe Harbor for first offense credit card penalty fee will remain unchanged at $ 29 and the adjusted dollar amount for the Safe Harbor for subsequent breach penalty fee will also remain. unchanged at $ 40;
  • HOEPA loans: The adjusted total loan amount threshold for high cost mortgages in 2021 will increase to $ 22,052 and the adjusted dollar trigger for points and fees for high cost mortgages in 2021 will increase to $ 1,103;
  • Mortgage loans eligible under the ability to repay rule:
    • The maximum thresholds for total points and fees in 2021 will be 3% of the total loan amount for a loan greater than or equal to $ 110,260;
    • $ 3,308 for a loan amount greater than or equal to $ 66,156 but less than $ 110,260;
    • 5% of the total loan amount for a loan greater than or equal to $ 22,052 but less than $ 66,156;
    • $ 1,103 for a loan amount greater than or equal to $ 13,783 but less than $ 22,052; and
    • 8% of the total loan amount for a loan amount less than $ 13,783.


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